Gjensidige Forsikring Group. 3 rd quarter results October 2017

Transcription

1 Gjensidige Forsikring Group 3 rd quarter results October 2017

2 Best-ever underwriting result Pre-tax profit NOK 1,718m Underwriting result NOK 1,150m - Combined ratio 81.0% - Premium growth 6.2% - Solid overall frequency claims level and low large losses - Cost ratio 14.7% and good cost control, 13.9% excluding Baltics Financial result NOK 477m, investment return 0.9% 22.4% return on equity* Combined ratio % Q Q Loss ratio Cost ratio Pre-tax profit NOK m Q Q UW-result Financial result Other * Annualised, YTD Q including one-off restructuring cost NOK 120m 2

3 Operational improvements - Gjensidige awarded reputation prize 2017 Continued strong profitability and position in Norway Reputation prize 2017 to Gjensidige in Norway Gradually improving profitability in Denmark Sweden and the Baltics on track for profitability - Sweden to be reported as separate segment from new EVP as from 1 November 2017 Continuously balancing cost efficiency measures with strategic investments o o o o Number 1 in the financial sector Number 6 independent of sector Close to all Norwegians know Gjensidige 72% of Norwegians have a good impression of Gjensidige The jury s grounds: Gjensidige is awarded the prize because the company has enjoyed a strong reputation for a long time, a reputation that also has become gradually stronger in recent years. Gjensidige is one of the enterprises, agencies and organisations that have experienced a positive development in most of the areas we measure in the past ten years. During the period, there has been a gradual increase in the percentage of the population that have a good impression of the company. This applies almost without exception. Since 2011, the percentage with a good impression has increased from 65% to 72%, and the percentage with a very good impression has increased most. The percentage with a poor impression of the company has been roughly halved in the same period. The fact that Gjensidige shows improvement in most factors in 2017, confirming the progress it has shown over time in all the areas we measure, is an important reason for our decision to award Gjensidige this prize. The results show that nearly all Norwegians know of the company and that, in most areas, Gjensidige stands out very clearly from other companies in the same industry. 3

4 Strong commercial franchise in Norway - improving operating environment #1 position in the commercial market Profitable growth over time Macro recovery expected to support premium development going forward Good profitability resilient to macro fluctuations Cost efficient operation, cost ratio 10.9% - 80% direct, own distribution - mainly SME customers - High customer retention - 87% for SME customers Developing skills, digital platform and products/ solutions to stay competitive Customer dividend model supports retention NOKbn Earned premiums R12m Q317 NOKbn UW-result and CR R12m UW CR (rhs) Q317 80% 70% 60% 4

5 Financial performance

6 Strong third quarter results NOK m Q Q YTD 2017 YTD 2016 Private Commercial Nordic Baltics 5 (21) (26) (63) Corporate Centre/costs related to owner (56) (196) (188) 118 Corporate Centre/reinsurance (89) (67) (177) (144) Underwriting result Pension Retail Bank Financial result from the investment portfolio Amortisation and impairment losses of excess value (63) (64) (189) (194) Other items (8) (11) (34) (30) Profit/(loss) before tax expenses

7 Solid and increased underwriting result in all segments Development in total UW result Development in UW result per segment Q One-off Q316 Change large losses Change run-off Underlying change Q Q One-off Q316 CC = corporate centre Private Commercial Nordic Baltic CC Q

8 Solid premium growth of 6.2 per cent Premium development NOK m Key drivers - premium development Private 4.3% - Underlying 3.9% adjusted for portfolio moved and one large contract not renewed, in particular driven by A&H Commercial 1.6% - In particular driven by Commercial Property Nordic 9.4% - Underlying 3.4%, driven by Sweden and the private portfolio in Denmark Baltics 5.6% Q Private Commercial Nordic Baltics CC Q Underlying 5.0%, driven by repricing and portfolio restructuring CC = corporate centre 8

9 Low loss ratio at 66.3 per cent Loss ratio development Key drivers Overall stable and strong underlying frequency claims level - Positive development in Private, Nordic and Baltics - Marginal negative development in Commercial and Corporate Centre % % % Low level of large losses Stable run-off effect Q Change in large losses (pp) Change in run off (pp) Underlying frequency claims change (pp) Q Loss ratio (%) 9

10 Large losses 1.2 percentage points - lower than expected level Large losses reported vs expected Large losses per segment NOK m NOK m Q Q Reported Expected Private Commercial Nordic Baltics CC Q Q CC = corporate centre. Large losses: Losses > NOK 10m. Weather related large losses are included. Large losses in excess of NOK 30.0m are charged to the Corporate Centre while up to NOK 30m per claim is charged to the segment in which the large loss occurred. The Baltics segment has, as a main rule, a retention level of EUR 0.5m 10

11 Run-off gains 4.0 percentage points - close to expected level Run-off net Run-off net per segment NOK m NOK m Private Commercial Nordic Baltics CC -22 Q Q Q Q CC = corporate centre 11

12 Continued good cost control - cost ratio 14.7 per cent Cost development Key drivers - cost development NOK m One-off CC NOK 120m in Q (14) (121) Cost ratio13.9% excluding Baltics 892 Q Private Commercial Nordic Baltics CC Q CC = corporate centre 12

13 Satisfactory investment return of 0.9 per cent Investment return Portfolio mix as at % 2.0 % 2% 6% 3% 8% 1.0 % 2% 6% 0.0 % -1.0 % Q Q Q Q Q Match portfolio Free portfolio Total Portfolio 2% 6% 8% 32% Investment return, free portfolio Q % Fixed income 0.6 Current equities 3.8 PE funds 3.7 Property 1.2 Total free portfolio 1.4 Match portfolio NOK 34.6bn Free portfolio NOK 18.9bn 25% Money market Bonds at amortised cost Current bonds Money market Other bonds High Yield bonds Convertible bonds Current equities PE funds Property Other 13

14 Bank and pension operations continue to serve their strategic purpose in Norway Gjensidige Bank AS Gjensidige Pensjonsforsikring AS NOK bn Gross lending NOK bn Assets under management Other Q Q Q Q Q Q Q Q Q Q Unit linked Paid up policy NOK m Profit and return % 16 NOK m Profit and return % Q Q Q Q Q Pre-tax profit ROE* (RHS) 37 Q Q Q Q Q Pre-tax profit** ROE* (RHS) *Annualised YTD **Pre-tax profit 2016 including GPS holding AS 14

15 Strong capital position - continued capital discipline Strong capital position Capital available (NOK bn) Solvency margin: 110% 173% 145% S&P rating model (GI) Partial Internal Model (Group) Standard Formula (Group) Capital discipline Capital buffers well within risk appetite Revised Solvency II target corridors: - SF: PIM: Solvency margins 177% (PIM) and 148% (SF) when including guarantee scheme No signals from the FSA regarding PIM approval date Capital requirement Capital > Capital requirement Figures as at The Solvency II regulation is principle based. Calculations are based on Gjensidige s understanding of the Solvency II regulation and how it is implemented in Norway, including the current view of the Norwegian FSA on the guarantee provision. If the Guarantee provision had been treated as solvency capital, the Group s PIM and SF solvency margins would be 177% and 148%, respectively. The figures related to the S&P rating model are based on Gjensidige s interpretations of the model. The figures are adjusted for a formulaic dividend pay-out ratio of 70 per cent of net profit. 15

16 Concluding remarks Key takeaways Best-ever underwriting result Continued good competitiveness Positive effects from measures taken in the Nordic and Baltic segments Balancing cost efficiency measures with strategic investments Strong capital position Targets Return on equity >15% Combined ratio 86-89%* Cost ratio ~15% Dividends Nominal high and stable (>70%) Becoming the most customer-oriented general insurer in the Nordic region * Combined ratio target on an undiscounted basis, assuming ~4 pp run-off gains next years and normalised large losses impact. Beyond the next years, the target is given 0 pp run-off. 16

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18 Roadshows and conferences post Q results Date Location Participants Event Arranged by 26 October Oslo CEO Helge Leiro Baastad CFO Jostein Amdal Head of IR Janne Flessum IRO Katharina Hesbø Group lunch Roadshow SEB 27 October London CEO Helge Leiro Baastad CFO Jostein Amdal EVP Commercial Mats Gottschalk Head of IR Janne Flessum IRO Katharina Hesbø Roadshow SEB 30 October Copenhagen CFO Jostein Amdal Head of IR Janne Flessum Roadshow ABG 31 October Helsinki CFO Jostein Amdal IRO Katharina Hesbø 23 November Frankfurt CEO Helge Leiro Baastad Head of IR Janne Flessum Roadshow Nordic seminar Danske Bank Nordea 18

19 Appendix

20 General insurance cost ratio and loss ratio per segment Private Commercial 73.4 % 71.7 % 74.9 % 71.1 % 12.7 % 12.7 % 12.9 % 13.0 % 60.6 % 59.1 % 62.0 % 58.1 % 77.1 % 75.9 % 78.1 % 73.1 % 10.9 % 11.4 % 10.6 % 10.9 % 66.1 % 64.5 % 67.5 % 62.1 % Nordic YTD 2016 YTD 2017 Q Q Loss ratio Cost ratio 94.8 % 97.5 % 96.2 % 91.4 % 15.2 % 15.3 % 14.7 % 14.4 % 79.6 % 82.2 % 81.5 % 77.1 % YTD 2016 YTD 2017 Q Q Loss ratio Cost ratio YTD 2016 YTD 2017 Q Q Loss ratio Cost ratio Baltics % % % 98.3 % 37.4 % 32.6 % 38.5 % 31.5 % 70.6 % 70.7 % 69.7 % 66.9 % YTD 2016 YTD 2017 Q Q Loss ratio Cost ratio 20

21 Effect of discounting of claims provisions Assuming Solvency II regime Effect of discounting on CR Q Assumptions Only claims provisions are discounted (i.e. premium provisions are undiscounted) 81.0% 1.0% 80.0% Swap rates in Norway, Sweden and Denmark Euroswap rates in the Baltic countries Reported CR Discounting Discounted CR (SII) 21

22 Large losses and run-off development ~ NOK 1.2bn in large losses * expected annually NOK m Q317 Q117 Q316 Q116 Q315 Q115 Q314 Q114 Q313 Q113 Q312 Q112 Q311 Q111 Expected Reported * Losses >NOK 10m. From and including 2012, the numbers include weather related large losses. Expected annual run-off gains of ~4 pp next years Run-off % of earned premium 4.5 % 4.0 % 3.5 % 3.0 % 2.5 % 2.0 % 1.5 % 1.0 % 0.5 % 0.0 % -0.5 % -1.0 % -1.5 % -2.0 % 2000 Group life and Motor BI (Norway) Liability and Accident (Denmark) WC and disease (Norway) Run-off (%), net Average Motor TPL and WC (Norway) R12M Q

23 Quarterly underwriting results General Insurance NOK m ( 50) ( 250) ( 450) Q (369) * 732 Q Q ** 1150 Q *** Q1 Q2 Q3 Q4 *Reported UW result for Q was NOK 1,251m. Adjusted for a non-recurring income of NOK 477m related to the pension plans, the UW result was NOK 774m. ** Reported UW result for Q was NOK 712m. Adjusted for a non-recurring NOK 120m restructuring cost the UW result was NOK 832m. *** Reported UW result for Q42016 was NOK700m. Adjusted for a non-recurring NOK 44m increase in provision for restructuring cost and NOK23m provision for increased pay-roll tac the UW result was NOK 767m 23

24 Investment strategy supporting high and stable nominal dividends Match portfolio - Duration and currency matching versus technical provisions (undiscounted) - Credit element for increased returns - Some inflation hedging Free portfolio - Compounding and focused on absolute returns - Dynamic risk management - Tactical allocation - Active management fixed income and equities - Normal risk premiums basis for asset allocation and use of capital Key characteristics Limited risk appetite Currency hedging vs NOK ~ 100% - Limit +/- 10% per currency Marked-to-market recognition - Except bonds at amortised cost Stable performance Accumulated return Q415 Q414 Q413 Q412 Q411 Q410 Q416 24

25 Investment portfolio - asset classes and relevant benchmarks Match portfolio Asset class Investments, key elements* Benchmark Money market Norwegian money market ST1X index Bonds at amortised cost Government and corporate bonds EXOGEN Current bonds Free portfolio Mortgage, sovereign and corporate bonds, investment grade bond funds and loan funds containing secured debt IBOX COR 1-3 yrs QW5C index Money market Norwegian money market ST1X index Other bonds High Yield bonds Convertible bonds Current equities IG bonds in internationally diversified funds externally managed and current bonds Internationally diversified funds externally managed Internationally diversified funds externally managed Mainly internationally and domestic diversified funds externally managed Global Agg Corp LGCPTRUH index BOAML global HY HWIC index BOAML global 300 conv VG00 index / EXOGEN MSCIAC NDUEACWF index PE funds Oil/ oil-service/ general (Norwegian and Nordic funds) OSEBX index / oil price Property 50% of Oslo Areal IPD index Norway / EXOGEN Other Miscellaneous *See quarterly report for a more detailed description 25

26 Asset allocation As at Match portfolio Carrying amount: NOK 34.6bn Average duration: 3.4 years Free portfolio Carrying amount: NOK 18.9bn Average duration fixed-income instruments: 2.7 years 13% 9% 22% 38% 18% 49% 7% 17% Money market 16% 6% 5% Bonds at amortised cost Current bonds Money market High Yield Current equities Property Other bonds Convertible bonds PE-funds Other 26

27 Stable contribution from the match portfolio Asset allocation as at Quarterly investment returns * 4% 35% 2% 0% Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q % -2% -4% Match portfolio Free portfolio Match portfolio Free portfolio * * Prior to 2014 former associated companies were not included in the Free portfolio. 27

28 Balanced geographical exposure Match portfolio Free portfolio, fixed-income instruments 9% 2% 8% 6% 46% 2% 13% 11% 32% 23% 6% 35% 5% 2% Norway Sweden Denmark USA UK Baltic Other Norway Sweden Denmark USA UK Baltic Other Figures as at Geographical distribution relates to issuers and does not reflect actual currency exposure 28

29 Credit and counterparty risk Credit exposure The portfolio consists mainly of securities in rated companies with high creditworthiness (Investment grade) Issuers with no official rating are mainly Norwegian savings banks, municipalities, credit institutions, industry and power producers and distributors Total fixed income portfolio Split - Rating Match portfolio Free portfolio NOK bn % NOK bn % AAA AA A BBB BB B CCC or lower Internal rating* Unrated Fixed income portfolio Split - Counterparty Match portfolio Free portfolio NOK bn % NOK bn % Public sector Bank/financial institutions Corporates Total Figures as at *Internal rating rating by Gjensidige 29

30 Overview capitalisation (NOK bn) Capital available SF (Group) SF (general insurance) PIM (Group) PIM (general insurance) Rating model (general insurance) Gjensidige Bank Gjensidige Pensjonsforsikring Capital requirement Solvency margin 145% 150% 173% 199% 110% 107% 133% Figures as at The Solvency II regulation is principle based. Calculations are based on Gjensidige s understanding of the Solvency II regulation and how it is implemented in Norway, including the current view of the Norwegian FSA on the guarantee provision. If the Guarantee provision had been treated as solvency capital, the Group s PIM and SF solvency margins would be 177% and 148%, respectively. The figures related to the S&P rating model are based on Gjensidige s interpretations of the model. The figures are adjusted for a formulaic dividend pay-out ratio of 70 per cent of net profit. Allocation of capital to Gjensidige Bank is based on 16.5 per cent capital adequacy ratio. 30

31 Solvency II economic capital available NOK bn IFRS equity capital Adjustments for other financial sectors Subordinated debt Dividend Declared (minimum dividend, not dividend already according to recognised in dividend accounts policy. 70% of YTD result) Intangible assets Fair value adjustment, assets Discounting effect of claims provisions (which are not already disc.) Risk margin Solvency II calculation of premium provisions Solvency II calculation of technical provisions for life insurance (GPF) Deferred tax liability Miscellaneous Economic capital available (internal model) Additional risk margin standard formula Economic capital available (standard formula) Figures as at GPF = Gjensidige Pensjonsforsikring. The Solvency II regulation is principle based. Calculations are based on Gjensidige s understanding of the Solvency II regulation and how it is implemented in Norway, including the current view of the Norwegian FSA on the guarantee provision. Deferred tax: All differences in valuation of assets and liabilities are adjusted for tax. No tax is assumed on the security provision. Miscellanious: Main effects are related to the guarantee scheme provision and different valuation of Oslo Areal 31

32 Solvency II capital requirements NOK bn PIM SF Capital available 22,0 21,7 Capital charge for non-life and health uw risk 6,3 8,0 Capital charge for life uw risk 1,5 1,5 Capital charge for market risk 6,8 7,4 Capital charge for counterparty risk 0,5 0,5 Diversification -4,8-4,1 Basic SCR 10,3 13,3 Operational risk 1,0 1,0 Adjustments (risk-reducing effect of deferred tax) -2,5-3,1 Gjensidige Bank 3,9 3,9 Total capital requirement 12,7 15,0 Surplus 9,3 6,7 Solvency ratio 173 % 145 % Scope internal model Out of scope, covered by SF Non-life and health uw risk Life insurance risk Other risks Market risk Operational risk Within IM scope Figures as at The Solvency II regulation is principle based. Calculations are based on Gjensidige s understanding of the Solvency II regulation and how it is implemented in Norway, including the current view of the Norwegian FSA on the guarantee provision. If the Guarantee provision had been treated as solvency capital, the Group s PIM and SF solvency margins would 177% and 148%, respectively. The figures are adjusted for a formulaic dividend pay-out ratio of 70 per cent of net profit. Allocation of capital to Gjensidige Bank is based on 16.5 per cent capital adequacy ratio. Pie chart is based on allocated capital for the specified risk types within the Gjensidige Group excl. Gjensidige Bank. 32

33 Solvency II sensitivities PIM 173% 177% 176% 169% 170% 183% 163% 167% SCR 100% Solvency II ratio Equity (-20%/+20%) Interest rate (-100 bps/+100 bps) Spread (-100 bps/ +100 bps) Inflation +100 bps Figures as at Calculations are based on Gjensidige s understanding of the Solvency II regulation and how it is implemented in Norway, including the current view of the Norwegian FSA on the guarantee provision. If the Guarantee provision had been treated as solvency capital, the Group s PIM solvency margin would be 177%. Total comprehensive income is included in the calculations, minus a formulaic dividend pay-out ratio of 70 per cent of net profit. UFR-sensitivity is very limited. 33

34 Solvency II sensitivities SF 145% 150% 147% 140% 142% 154% 136% 139% SCR 100% Solvency II ratio Equity (-20%/+20%) Interest rate (-100 bps/+100 bps) Spread (-100 bps/ +100 bps) Inflation +100 bps Figures as at Calculations are based on Gjensidige s understanding of the Solvency II regulation and how it is implemented in Norway, including the current view of the Norwegian FSA on the guarantee provision. If the Guarantee provision had been treated as solvency capital, the Group s SF solvency margin would be 148%. Total comprehensive income is included in the calculations, minus a formulaic dividend pay-out ratio of 70 per cent of net profit. UFR-sensitivity is very limited. 34

35 S&P total available capital Bridging the gap between IFRS equity and available capital NOK bn IFRS equity capital Retail Bank Tier 1 capital Booked equity in Retail Bank and Pension (subsidiaries) Subordinated debt Dividend (minimum dividend according to dividend policy, 70% of YTD result) Declared dividend, not already recognised in accounts Intangible assets Fair value adjustment, assets Discounting effect claims provisions (which are not already disc.) and premium provisions Deferred tax liability Adj Oslo Areal Total available capital (TAC) Figures as at The figures related to the S&P rating model are based on Gjensidige s interpretations of the model. Note that the rating perspective is based on the balance sheet of the Group s general insurance operations. 35

36 S&P capital requirement NOK bn Total capital charge for asset risk 7.1 Total capital charge for insurance risk 9.0 Total gain diversification (1.1) Quantitative credit (0.7) Total capital requirement A-rating 14.2 Figures as at The figures related to the S&P rating model are based on Gjensidige s interpretations of the model. Note that the rating perspective is based on the balance sheet of the Group s general insurance operations. 36

37 Subordinated debt capacity Principles for capacity Capacity and utilisation Intermediate Equity Content Constraint Tier 1 remaining capacity is NOK 1.7bn S&P 25% of TAC For the general insurance group, both Solvency II Tier 1 and Tier 2 instruments are classified as Intermediate Equity Content. Capital must be regulatory eligible in order to be included. Utilised Tier 1 debt capacity: NOK 1.0bn Tier 2 capacity is fully utilised for the insurance group assuming PIM approval Utilised sub debt: NOK 1.5bn* Utilised natural perils fund and guarantee scheme: NOK 3.0bn T1 T2 Constraint SII Max 20% of Tier 1 capital Max 50% of SCR less other T2 capital items Must be satisfied at group and solo level Figures as at The Solvency II regulation is principle based. Calculations are based on Gjensidige s understanding of the Solvency II regulation and how it is implemented in Norway. However, the FSA s view on the Guarantee provision as a liability for solvency purposes has not been reflected in the debt capacity figures, as Gjensidige still assumes that the Guarantee provision will count as solvency capital. *Sub debt Gjensidige Forsikring ASA NOK 1.2bn, Gjensidige Pensjonsforsikring NOK 0.3bn 37

38 Annualised return on equity 22.4 per cent Equity (NOK m) Return on equity (%) Profit YTD Q Total components of other comprehensive income Dividend paid FY 2016 YTD 2017* Bridge shows main elements in equity development * Annualised 38

39 Market leader in Norway Market share Total market Market share Commercial Market share Private 3.1% 4.4% 17.5% 25.5% 4.7% 10.4% 13.2% 21.1% 28.3% 24.6% 24.0% 19.2% 14.3% 13.6% 12.6% Gjensidige If Tryg Sparebank1 DNB Eika Storebrand Other 4.4% Gjensidige If Tryg Sparebank1 Gjensidige If Sparebank1 Tryg Source: Finance Norway, non-life insurance, 2 nd quarter

40 Nordic and Baltic growth opportunities Market shares Norway Market shares Sweden 2.4% 29.8% 10.4% 13.2% 25.5% 21.1% Gjensidige If Tryg SpareBank 1 Other 17.8% 16.3% 14.7% 18.4% 30.4% Gjensidige Folksam If Lansforsäkringar Trygg Hansa Other Market shares Denmark Market shares Baltics 31.9% 7.6% 17.8% 16.8% 5.6% 10.9% 9.5% Gjensidige Tryg Topdanmark Alm. Brand Codan If Other 21.0% 13.2% 10.9% 9.6% 20.2% 25.1% Gjensidige inc PZU PZU Vienna If Ergo Other Sources: Finance Norway, 2 nd quarter Insurance Sweden, 2 nd quarter 2017 (Gjensidige including Vardia), The Danish Insurance Association 3 rd quarter 2016 (Gjensidige including Mølholm). Baltics Insurance Supervisory Authorities of Latvia and Lithuania, Estonia Statistics, competitor reports, and manual calculations, 2 nd quarter

41 Ownership 10 largest shareholders * Geographical distribution of shares ** No Shareholder Stake (%) 1 Gjensidigestiftelsen Folketrygdfondet Deutsche Bank Caisse de Depot et Placement du Quebec Danske Bank BlackRock DNB The Vanguard Group State Street Corporation Storebrand 0.7 Total 10 largest % 23% 6% 4% 24% 39% Norway North America UK Asia Europe excl. UK and Norway Gjensidige Foundation ownership policy: Long term target holding: >60% RoW/ Unidentified Can accept reduced ownership ratio in case of acquisitions and capital issues when in accordance with Gjensidige s overall strategy * Shareholder list based on analysis performed by Orient Capital Ltd of the register of shareholders in the Norwegian Central Securities Depository (VPS) as per 30 September This analysis provides a survey of the shareholders who are behind the nominee accounts. There is no guarantee that the list is complete. ** Distribution of shares excluding share held by the Gjensidige Foundation (Gjensidigestiftelsen). 41

42 Disclaimer This presentation and the information contained herein have been prepared by and is the sole responsibility of Gjensidige Forsikring ASA (the "Company ). Such information is being provided to you solely for your information and may not be reproduced, retransmitted, further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. The information and opinions presented herein are based on general information gathered at the time of writing and are therefore subject to change without notice. The Company assumes no obligations to update or correct any of the information set out herein. These materials may contain statements about future events and expectations that are forward-looking statements. Any statement in these materials that is not a statement of historical fact including, without limitation, those regarding the Company s financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company s present and future business strategies and the environment in which the Company will operate in the future. The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This presentation does not constitute or form part of, and is not prepared or made in connection with, an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. The information in this presentation is subject to verification, completion and change. The contents of this presentation have not been independently verified. While the Company relies on information obtained from sources believed to be reliable, it does not guarantee its accuracy or completeness. Accordingly, no representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its owners, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. None of the Company, its affiliates or any of their respective advisors or representatives or any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with the presentation. The Company's securities have not been and will not be registered under the US Securities Act of 1933, as amended (the "US Securities Act ), and are offered and sold only outside the United States in accordance with an exemption from registration provided by Regulation S of the US Securities Act. This presentation should not form the basis of any investment decision. Investors and prospective investors in securities of any issuer mentioned herein are required to make their own independent investigation and appraisal of the business and financial condition of such company and the nature of the securities. Any decision to purchase securities in the context of a proposed offering of securities, if any, should be made solely on the basis of information contained in any offering documents published in relation to such an offering. For further information about the Company, reference is made public disclosures made by the Company, such as filings made with the Oslo Stock Exchange, periodic reports and other materials available on the Company's web pages. In addition to the financial statements according to IFRS, Gjensidige uses different alternative performance measures (APM) to present the business in a more relevant way for its different stakeholders. The alternative performance measures have been used consistent over time, and relevant definitions have been disclosed in the quarterly reports. Comparable figures are provided for all alternative performance measures in the quarterly reports. 42

43 Notes 43

44 44 Investor relations Janne Flessum Head of Investor relations, M&A and Capital management Mobile: Anette Bolstad Investor relations officer Mobile: Katharina H. Hesbø Investor relations officer Mobile: Address: Schweigaards gate 21, PO Box 700 Sentrum, 0106 Oslo, Norway